voluntary accident insurance
DEFINITION: Voluntary accident insurance refers to coverage in which voluntary benefits are offered by an employer but paid for by employees, via payroll deduction. Voluntary accident insurance is an accident insurance policy (aka, an accident supplement) that an employer offers to employees.
If employees wish to enroll in the coverage, the premiums are deducted from their paychecks. Group rates for accident supplements make the coverage more affordable than it would be if each employee had to purchase an individual plan.
Workplace accidents are covered under workers’ compensation insurance, but accidents that occur when employees are not at work would be covered by a voluntary accident insurance plan. The accident insurance would help to cover the out-of-pocket costs associated with the employee’s medical insurance plan (deductible and coinsurance) that the employee would otherwise have to pay.